Correlation Between Robert Half and Stanley Black

Can any of the company-specific risk be diversified away by investing in both Robert Half and Stanley Black at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Robert Half and Stanley Black into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Robert Half International and Stanley Black Decker, you can compare the effects of market volatilities on Robert Half and Stanley Black and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Robert Half with a short position of Stanley Black. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robert Half and Stanley Black.

Diversification Opportunities for Robert Half and Stanley Black

-0.14

Correlation Coefficient

Robert Half  Stanley Black

Good diversification

The 3 months correlation between Robert and Stanley is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Robert Half International and Stanley Black Decker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stanley Black Decker and Robert Half is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Robert Half International are associated (or correlated) with Stanley Black. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stanley Black Decker has no effect on the direction of Robert Half i.e., Robert Half and Stanley Black go up and down completely randomly.

Pair Corralation between Robert Half and Stanley Black

Considering the 90-day investment horizon Robert Half International is expected to under-perform the Stanley Black. But the stock apears to be less risky and, when comparing its historical volatility, Robert Half International is 1.3 times less risky than Stanley Black. The stock trades about -0.13 of its potential returns per unit of risk. The Stanley Black Decker is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  5,817  in Stanley Black Decker on May 7, 2025 and sell it today you would earn a total of  976.00  from holding Stanley Black Decker or generate 16.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Robert Half International  vs.  Stanley Black Decker

Robert Half International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Robert Half International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Stanley Black Decker

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Stanley Black Decker are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal basic indicators, Stanley Black disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Robert Half and Stanley Black

The main advantage of trading using opposite Robert Half and Stanley Black positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robert Half position performs unexpectedly, Stanley Black can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Stanley Black will offset losses from the drop in Stanley Black's long position.

The idea behind Robert Half International and Stanley Black Decker pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.